Forget Quantum Computing Inc. Stock: Buy This AI‑First Tech Titan Hiding in Plain Sight

By Dave Kovaleski – Jan 27, 2026 at 3:15PM ESTKey PointsQuantum computing is the next frontier of technology.There are several different ways to tap into what could be a boom in this space, although it is still early days. One great option for investors is an established tech titan that is ramping up its R&D in quantum computing. These 10 Stocks Could Mint the Next Wave of Millionaires ›NASDAQ: GOOGLAlphabetMarket Cap$4.0TToday's Changeangle-down(0.62%) $2.07Current Price$335.33Price as of January 27, 2026 at 3:41 PM ETThis "Magnificent Seven" company is establishing itself in the next frontier of technology.There are a few different ways to tap into the coming quantum computing revolution. You can invest in a pure-play stock like Quantum Computing Inc. (QUBT +3.88%) and hope that it is among the ones that break out and don't get gobbled up by a bigger fish or go out of business. Think of all the dot-coms there were before things started consolidating. Another option is to find an exchange-traded fund (ETF) that invests in a pool of cutting-edge quantum computing stocks for that diversification and active, or passive, management that comes with it. Image source: Getty Images. The third choice is to bet on one of the tech titans that are ramping up their quantum computing capabilities and may start gobbling up some of the winners along the way. Right now, I'd go the ETF or tech titan route, just out of caution about jumping in too deep with a more speculative pure-play stock. And one tech titan I'd zero in on is Alphabet (GOOGL +0.62%) (GOOG +0.62%), the parent company of Google. Alphabet stock is coming off a stellar 2025 Alphabet was the top-performing "Magnificent Seven" stock in 2025, returning about 65% for the year. The analyst community is somewhat cautious about Alphabet after the 2025 surge, perhaps due to higher-than-expected capital expenditures for 2025 and plans to increase spending in 2026. There was a time not long ago when investors wanted to see increases in capital spending on artificial intelligence (AI) and technology, but that flipped late last year as many started questioning the return on all of this AI spending, with, at the time, fears of an AI bubble popping. ExpandNASDAQ: GOOGAlphabetToday's Change(0.62%) $2.06Current Price$335.65Key Data PointsMarket Cap$4.0TDay's Range$333.79 - $338.2152wk Range$142.66 - $341.20Volume481KAvg Vol24MGross Margin59.18%Dividend Yield0.25% Also, the higher capex spending had the effect of lowering Alphabet's operating margin by a percentage point in the most recent quarter, so those concerns may be lingering with more spending coming in 2026. While AI spending in general may be overdone by some companies in some industries, I don't see that as the case with hyperscalers like Alphabet, so this is not a concern that I share. Investors may also have some regulatory and legal worries; last week, a federal judge in the Northern District of California allowed a class action suit by consumers to proceed against the company over antitrust claims about the Google search engine. This is separate from the antitrust suit the federal government filed against Google Search in 2020, in which the courts subsequently ruled in favor of the government. The judge levied the remedies last year, which Alphabet has appealed. These are the primary sources of uncertainty. Investing in quantum computing Outside of these areas, Alphabet has a lot of momentum. It continues to gain market share in its cloud computing business, ranking a solid No. 3 behind Amazon Web Services and Microsoft Azure. It has also maintained its dominance in search with about a 90% market share, and it is closing the gap with OpenAI with its Google Gemini chatbot. It is also investing in the next frontier, quantum computing. In late 2024, Google came out with its Willow quantum computing chip, which was hailed for its computational speed and capacity to reduce errors. In October, it introduced a new quantum algorithm called Quantum Echoes. Google said it marks the first time that a quantum computer has successfully run a verifiable algorithm that beats the performance of supercomputers. "We've demonstrated it runs 13,000 times faster on Willow than the best classical algorithm on one of the world's fastest supercomputers," stated a Google blog post. So, Alphabet is clearly looking beyond AI and seems to have established itself as a serious player and innovator in quantum computing. It's hard not to like where Alphabet is headed, even if analysts suggest returns could be in the single-digit territory over the next 12 months. It's also not carrying a ridiculously high valuation like many other tech stocks, trading at 29 times forward earnings. Quantum computing in general could be the next big thing, and Quantum Computing Inc. has awesome multibagger potential. But the better play, in my view, is the tech titan named Alphabet, which is already laying the groundwork to lead in quantum computing.Read NextJan 27, 2026 •By Adam SpataccoWhy Billionaires Are Quietly Buying This AI Stock for 2026Jan 27, 2026 •By Sean Williams3 Trillion-Dollar Stocks Billionaire Philippe Laffont Can't Stop BuyingJan 26, 2026 •By Lawrence Nga3 Things Alphabet Needs to Prove in 2026Jan 26, 2026 •By Neil PatelApple's Action Tells Me That Another "Magnificent Seven" Stock Is the Best AI Investment Opportunity in 2026 and BeyondJan 26, 2026 •By Sean WilliamsPrediction: Verizon Will Be Booted From the Dow Jones Industrial Average in 2026 and Replaced by This Trillion-Dollar Club MemberJan 24, 2026 •By Daniel SparksAlphabet Stock Has Soared More Than 70% In 6 Months.

Is It Too Late to Buy Shares?About the AuthorDave mainly covers financials, consumer goods, and technology stocks and ETFs. He wrote for the Fool from 2019-2023 and rejoined the Fool in 2026. In the past he's covered mutual funds and institutional investments for Pensions & Investments, personal finance for S&P, money markets and bonds for Crane Data, and stocks for ValueWalk.TMFdkovaleskiStocks MentionedAlphabetNASDAQ: GOOGL$335.33 (+0.01%) $+2.07AlphabetNASDAQ: GOOG$335.65 (+0.01%) $+2.06Quantum ComputingNASDAQ: QUBT$11.26 (+0.04%) $+0.42*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.